Minister calls for accountability in CSOTs
INDUSTRY and Commerce Minister, Nqobizitha Mangaliso Ndlovu, has called for greater accountability and transparency in Community Share Ownership Trusts (CSOTs) that received funding but failed to deliver meaningful results.
Speaking at a CSOT workshop in Kwekwe yesterday, Minister Ndlovu stressed the trusts were supported by public finance and must be scrutinised to ensure they fulfil their mandate.
CSOTs were established in Zimbabwe under the indigenisation and economic empowerment legislation and policy frameworks to empower previously disadvantaged indigenous communities.
The initiative is aimed at ensuring that proceeds from the exploitation of natural resources in rural areas where 70 percent of Zimbabwe’s indigenous population resides benefit local communities.
Minister Ndlovu said CSOTs were designed to serve as vehicles for socio-economic empowerment in communities, with traditional chiefs playing a central role in driving this agenda.
“The exploitation of natural resources in most rural areas was not benefiting local communities. CSOTs were mandated by the Government to address this imbalance,” he said.
The first CSOT was registered and launched in 2011, with operations beginning in 2012. By the end of 2013, 61 CSOTs had been registered, 60 in rural communities and one in an urban set up.
However, only 26 of these trusts received seed capital from businesses involved in the commercial exploitation of natural resources.
Of the 26 funded CSOTs, only 10 got significant amounts that enabled them to make some impact on the ground. Despite these challenges, Minister Ndlovu acknowledged the few successful trusts have implemented hundreds of projects in critical areas such as social services, infrastructure development, enterprise development, and water and sanitation.
These projects have benefited millions of people in grassroots communities, significantly improving their living standards.
Minister Ndlovu expressed concern over the decline of some CSOTs that had previously received significant funding, with some folding entirely.
He called for a thorough investigation to determine the root causes of these failures.
“I am, however, saddened to note that some trusts that received significant funding then, have now receded while others have folded.
“These must be interrogated so that we establish the root causes for this,” he said.
He attributed some of the challenges to heavy losses incurred during currency conversions and called for collective efforts to find sustainable solutions.
He revealed his ministry is working on a new Economic Empowerment Act to address gaps in the existing legislation.
“Provincial stakeholder consultations were undertaken to develop an Economic Empowerment Bill, which is now with the Attorney General’s Office. We are optimistic it will be gazetted in the first quarter of 2025,” said Minister Ndlovu.
The new legislation is expected to provide a more robust framework for economic empowerment and ensure that CSOTs fulfil their intended purpose of uplifting communities. — chroncile
